Correlation Between Western Asset and Nuveen Senior
Can any of the company-specific risk be diversified away by investing in both Western Asset and Nuveen Senior at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Western Asset and Nuveen Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Nuveen Senior Income, you can compare the effects of market volatilities on Western Asset and Nuveen Senior and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Western Asset with a short position of Nuveen Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Nuveen Senior.
Diversification Opportunities for Western Asset and Nuveen Senior
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Nuveen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Nuveen Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Senior Income and Western Asset is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Western Asset Diversified are associated (or correlated) with Nuveen Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Senior Income has no effect on the direction of Western Asset i.e., Western Asset and Nuveen Senior go up and down completely randomly.
Pair Corralation between Western Asset and Nuveen Senior
If you would invest 456.00 in Nuveen Senior Income on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Nuveen Senior Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Western Asset Diversified vs. Nuveen Senior Income
Performance |
| Timeline |
| Western Asset Diversified |
| Nuveen Senior Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Nuveen Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Nuveen Senior
The main advantage of trading using opposite Western Asset and Nuveen Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Nuveen Senior can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nuveen Senior will offset losses from the drop in Nuveen Senior's long position.| Western Asset vs. Doubleline Yield Opportunities | Western Asset vs. PIMCO Access Income | Western Asset vs. Blackrock Innovation Growth | Western Asset vs. Cohen Steers Tax Advantaged |
| Nuveen Senior vs. Nuveen Floating Rate | Nuveen Senior vs. Pioneer Floating Rate | Nuveen Senior vs. BlackRock Floating Rate | Nuveen Senior vs. Blackrock Floating Rate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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